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TMI Blog2016 (4) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... cant proposes to manufacture shoes of different brand and design by installing fresh plant/machinery. Further, the contention of Revenue that the applicant proposes to take separate factory license, ESI No. and PF Codes for expanded Haridwar Plant II, therefore, it will not fall under the category of existing unit, is not correct. Relevant Notification No. 50/2003-CE, as also CBEC Circular dated 22.12.2010 and 17.02.2012, do not envisage such condition. In view of said clarifications issued by CBEC, applicant can continue to avail the benefit of excise exemption. Also it is observed from the Circular No. 960/03/2012-Cx dated 17.02.2012 that the situation of expansion of an eligible unit by acquiring an adjacent plot of land and installing new plant and machinery on such land, is akin to expansion by way of installing new plant and machinery inside the existing plot/premises. CBEC clarified that in such cases, the exemption should continue to be available from the residual period of exemption. Here, the applicant proposes to effect expansion wherefrom the new unit had started commercial production w.e.f. 26.03.2010. Therefore, in view of Circular dated 17.02.2012, applicant is el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit of excise duty exemption under the notifications would continue to be available to eligible industrial units. 3. Applicant submits that CBEC inter-alia has further clarified by its Circular No. 960/03/2012-CX dated 17. 02. 2012 that a unit availing exemption under the notification can even expand acquiring a plot of land adjacent to its existing premises by installing new plant / machinery and in so coming to the conclusion has reiterated the clarification in Circular No. 939/29/2010-CX dated 22.12 2010. Further, the expansion and installation of the plant and machinery is taking place in the same Khasra No. 72 74 for which ten year exemption has already been granted and is being availed. When even extending to adjacent plot of land is allowed, there is no reason why similar expansion within the same Khasra no. cannot be permitted. 4. Applicant has raised the following question before this Authority: Whether the benefit of Notification No. 50/2003-C.E. dated 10.06.2003 will be available to goods manufactured from the unit i.e. PLANT-II HARIDWAR established from expansion of the existing unit. 5. Revenue inter-alia submits that the applicant is engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... located in areas mentioned in Annexure II and III to the Notification from whole of the duty of excise or additional duty of excise, subject to following 2 conditions (i) The manufacturer who intends to avail of the exemption under this notification shall exercise his option in writing before effecting the first clearance and such option shall be effective from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year; (ii) The manufacturer shall, while exercising the option under condition (i) inform in writing to the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise giving the following particulars, namely:- (a) name and address of the manufacturer; (b) location/location of factory/factories; (c) description of inputs used in manufacture of specified goods; (d) description of the specified goods produced; (e) date on which option under this notification has been exercised; 9. It is observed from the Intimation / Declaration filed by the applicant under Notification No. 50/2003-CE that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up to the said cut-off date and without any further addition to the plant and machinery. (ii) Where the installed capacity in a particular unit is upgraded after the cut-off date, so as to increase the efficiency of the machinery by installing ancillary machines or replacement of some parts etc but in such a way that it does not lead to increase in capacity of production. (i) Where new dosage forms are manufactured after the cut-off date on the same line of production with the same machinery. (ii) Where a unit manufacturers a new product by installing fresh plant, machinery or capital goods after the cut-off date. Board has examined the matter. Under the said notifications, any new unit set up or an existing unit which has undergone substantial expansion that commences commercial production before the cut-off date is entitled to excise duty exemption in respect of excisable goods ( other than those appearing in the negative list) manufactured and cleared for a period of ten years from the date of commencement of commercial production. The provisions of these notifications do not place a bar or restriction on any addition/modification in the plant or machinery or on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acquiring an adjacent plot of land and installing new plant and machinery on such land, attention is invited to Boards Circular No. 939/29/2010-CX dated 22.12.2010 wherein it was inter-alia, clarified that any growth in the production/output of a unit by installing fresh plant and machinery would be eligible for exemption under these area-based Notifications. The situation of expansion of an eligible unit by acquiring an adjacent plot of land and installing new plant and machinery on such land is akin to expansion by way of installing new plant and machinery inside the existing plot/premises. It is, therefore, clarified that in such cases, the exemption should continue to be available for the residual period of exemption. 15. It is observed from the above Circular dated 17.02.2012 that the situation of expansion of an eligible unit by acquiring an adjacent plot of land and installing new plant and machinery on such land, is akin to expansion by way of installing new plant and machinery inside the existing plot/premises. CBEC clarified that in such cases, the exemption should continue to be available from the residual period of exemption. In the present case, applicant proposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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